R.I. firm extends Greek-debt offer

PROVIDENCE – Japonica Partners & Co., a local investment firm trying to buy as much as 4 billion euros ($5.3 billion) of Greek-government debt, said it’s making a final, monthlong extension of its tender offer, Bloomberg News reported.

The offer now has a deadline of Sept. 30, according to a statement issued by the Providence company. Japonica first made its tender offer in June and has extended it twice since then. Xander Heijnen, a spokesman for Japonica, said there will be no further extensions.

Japonica in July announced it would pay a minimum purchase price of 40 percent of the bonds’ principal amount, saying the offer reflected a fair value for securities that are volatile and “highly illiquid.” The offer falls below the so-called strip of 45 percent, which is the average price investors are bidding for outstanding Greek-government debt, according to Athens-based Piraeus Bank SA.

Japonica said in the statement that it’s appropriate to apply a 15 percent to 20 percent discount to Greek debt given that buyers are limited. •

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